A number of years ago we concluded that it was far better to retain our investments in wonderful businesses than try to just sell high and buy low over the course of a year. Long term clients will note that many of their holdings have been purchased and held for the duration, with more than satisfactory results. Our favourite holding period is forever. In our view, if you find a company with products that are still likely to be consumed in 10 to 20 years’ time and if that company can succeed in increasing the price of its products in line with or above inflation, then you have the basis of a wonderful long term holding. What excites us the most are the characteristics of a business that provide competitive advantage and pricing power. If you combine those traits with honest and competent management and a rational price it is rare that we will ever sell.
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